Redemption
The repayment of bonds prior to their maturity date.
bond-basics
Call Provisions
Provisions in a Bond that permit or require an Issuer to prepay or redeem Bonds before the stated Maturity Date. Such provisions are found in an Indenture or the Bond Resolution under “Redemption.”
See Also
Start with the Bond Basics
Hundreds of Terms and Concepts
Rebate
A requirement imposed under the Code to pay to the Internal Revenue Service an amount equal to the arbitrage earned on tax-exempt bonds.